Amid the sturdy and rising optimism surrounding the approval of the spot Ethereum ETF, the ball has began rolling demanding comparable merchandise for different altcoins like Solana. Market analysts have been stating that the approval of the spot Ethereum ETF can result in a snowball impact.
Chorus for Spot Solana ETF Grows
In a latest look on CNBC, BKCM CEO Brian Kelly recommended that Solana (SOL) might probably turn into the subsequent cryptocurrency exchange-traded fund (ETF). This hypothesis aligns with prior rumors in Hong Kong hinting on the issuer’s preparation for a SOL ETF.
CNBC Guest believes $Sol could have the Next Spot ETF 🤯 pic.twitter.com/M79fSC6uJy
— Joshua Jake (@itzjoshuajake) May 22, 2024
However, SOL faces distinctive challenges, because it at present lacks a futures ETF and has been labeled as a safety by the U.S. Securities and Exchange Commission (SEC), including additional complexity to its ETF prospects. Notably, a outstanding ETF issuer has expressed disinterest in launching ETFs past Bitcoin (BTC) and Ethereum (ETH) right now.
According to evaluation from Bloomberg’s James Seyffart, the approval of a futures ETF by the Commodity Futures Trading Commission (CFTC) might pave the best way for the potential approval of a Solana (SOL) SPOT ETF within the coming years, with the FIT21 Crypto Bill probably expediting this course of.
However, hurdles stay because the U.S. Securities and Exchange Commission (SEC) has explicitly labeled Solana as a safety, posing vital challenges for its ETF journey. Seyffart additionally famous an absence of demand for Litecoin (LTC) and Dogecoin (DOGE) ETFs.
But SEC isn’t dancing round SOL’s standing like they’ve ETH. Those lawsuits towards COIN and Kraken and others flat out say “Solana is a security” lol. Which might very simply make this a really rocky highway
— James Seyffart (@JSeyff) May 22, 2024
Bitwise Investment CEO Hunter Horsley said that there’s no must have separate ETFs for different altcoins. He mentioned that Bitwise’s 10 Crypto Index Fund already supplies buyers publicity to Bitcoin, Ethereum, Solana, and the highest seven different altcoins.
Bitcoin Maxis Oppose This Development
Bitcoin maximalist “The Bitcoin Therapist,” raised considerations concerning the potential introduction of a Solana ETF, as reported by CNBC.
He argues that the inclusion of Ethereum (ETH) within the spot ETF sphere has triggered a domino impact, unleashing a flood of lesser-known cryptocurrencies, disparagingly known as “shitcoins.”
The Bitcoin Therapist stays resolute in his dedication to Bitcoin.
CNBC is already speaking a few Solana ETF.
This is the issue with together with ETH into the spot ETF sport. They’ve opened Pandora’s field of shitcoins.
Looks like we’re about to have the free market on line casino everybody’s begged for.
I’ll stick with #Bitcoinpic.twitter.com/e2FOQaxtgc
— The ₿itcoin Therapist (@TheBTCTherapist) May 22, 2024
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